Achieving a 30% DSO Reduction and £500K in Write-Off Savings: An Order-to-Cash Transformation for a Global Logistics Major    

Industry: Travel, Transportation, Hospitality & Logistics | Services: Digital CX, Digital Operations, Intelligent Automation

Client Overview

As one of the world’s largest logistics companies, our client operates on an immense scale , operating in over 220 countries and territories and delivering more than 1.8 billion shipments annually. With over €80 billion in revenue, its UK B2C segment alone processes nearly 600,000 transactions yearly . At this massive volume, maintaining flawless and responsive receivables operations is critical to optimizing working capital and ensuring customer satisfaction across its diverse lines of business.

The Challenge

High DSO, Manual Workflows and Operational Inflexibility Across B2C AR

Despite its global scale, the client faced mounting challenges within its UK Accounts Receivable (AR) function. The legacy operating model, characterized by its reliance on manual processes and fragmented systems, created significant friction.

• Inconsistent Collection Performance: Manual payment allocation and a lack of real-time visibility into customer accounts led to inconsistent and inefficient collection efforts.
• Operational Inflexibility: Fragmented customer engagement channels and a lack of predictive analytics hindered proactive payment risk management. The time-consuming payment allocation process created a bottleneck, impacting upstream finance processes.
• Mounting Financial Risk: As a direct result of these inefficiencies, the client experienced rising write-offs and mounting bad debt. The legacy system’s inability to adapt to real-time customer needs further compounded this financial exposure.

To remain competitive and future-ready, the client recognized the critical need for a digital transformation of its Order-to-Cash (O2C) ecosystem. This initiative was not merely about operational improvement; it was about building a more resilient, responsive, and data-driven finance function.

Sutherland Solution

Digitally Powered O2C Transformation with Prodigy, Robility and Predictive Analytics

Sutherland delivered a comprehensive end-to-end transformation across the client’s B2C AR function by combining advanced digital tools with intelligent process redesign:

1. Global Operating Model: Transitioned the UK B2C AR to a scalable and standardized global operations framework.
2. Payment Digitization: Rolled out secure IVR and web payment portals aligned with PCI DSS Level 1 standards to improve self-service and reduce dependency on agent-led collections.
3. Sutherland Prodigy Platform: Enabled integrated query management, centralized remit processing, and real-time payment referencing for faster dispute resolution.    
4. Robility-Powered Auto Allocation: Introduced intelligent automation bots to accelerate payment matching – reducing turnaround time and manual intervention.
5. Predictive Analytics: Used risk-based segmentation and propensity-to-pay models to prioritize outreach efforts and drive smarter collections.
6. Omnichannel Engagement: Deployed SMS alerts and chat support to increase contact effectiveness and resolution speed, especially during peak cycles.

The Outcome

Stronger Collections, Faster Allocation and Reduced Write-Offs

Sutherland’s transformation of the client’s Accounts Receivable operations dramatically improved performance, agility, and customer experience. Monthly collection rate achievement surged from 90% to 105%, consistently exceeding internal KPIs. Days Sales Outstanding (DSO) related to duty and VAT dropped from 30 days to 20.8 days, representing a 30% reduction and unlocking substantial working capital.

Auto-allocation turnaround time was reduced from 72 to 24 hours, with accuracy reaching 98.87%, significantly streamlining cash application. At the same time, monthly bad debt was halved from £120K to £60K, lowering the rate from 5% to 3%, while £500K in annual write-off savings were achieved through enhanced query management and payment transparency. On the customer service front, 98% of calls were answered within 30 seconds, delivering a best-in-class AR contact center experience. This high-impact engagement evolved into a long-term strategic partnership, anchored in continuous innovation and shared accountability for outcomes.

That’s digital outcomes delivered!
Following the success of the O2C transformation, Sutherland became the client’s strategic partner for ongoing digital finance innovation and operations – with full accountability for measurable business outcomes